Hello, I am trying to figure this one out. I have an idea of how to complete the 1041, but I did have a few concerns about applying it to the document?

Thanks,

Prepare the 2012 fiduciary income tax return (Form 1041) for the Green Trust. In addition,

determine the amount and character of the income and expense items that each beneficiary

must report for 2012, and prepare a Schedule K1 for Marcus White. Omit all alternative

minimum tax computations. The 2012 activities of the trust include the following.

Dividend income, all qualified U.S. stocks $10,000

Taxable interest income 50,000

Tax-exempt interest income 20,000

Net long-term capital gain, incurred 11/1/12 25,000

Fiduciarys fees 6,000

Under the terms of the trust instrument, cost recovery, net capital gains and losses,

and fiduciary fees are allocable to corpus. The trustee is required to distribute $25,000

to Marcus every year. For 2012, the trustee distributed $40,000 to Marcus and $40,000 to

Marcuss sister, Ellen Hayes. No other distributions were made.

In computing DNI, the trustee properly assigned all of the deductible fiduciarys fees

to the taxable interest income.

The trustee paid $3,500 in estimated taxes for the year on behalf of the trust. Any

2012 refund is to be credited to 2013 estimates. The exempt income was not derived

from private activity bonds.

The trust was created on December 14, 1953. It is not subject to any recapture taxes,

nor does it have any tax credits. None of its income was derived under a personal services

contract. The trust has no economic interest in any foreign trust. Its Federal identification

number is 11-1111111.

The trustee, Wisconsin State National Bank, is located at 3100 East Wisconsin Avenue,

Milwaukee, WI 53201. Its employer identification number is 11-1111111. Marcus

lives at 9880 East North Avenue, Shorewood, WI 53211. His Social Security number is

123-45-6789. Ellen lives at 6772 East Oklahoma Avenue, Milwaukee, WI 53204. Her

Social Security number is 987-65-4321.